£120m in funding confirmed for Newcastle’s transformational Forth Yards regeneration scheme

Homes England has secured government approval for a new funding package worth £121.8 million, bringing the transformation of Forth Yards, Newcastle’s last major brownfield regeneration site, another step closer.

Forth Yards is a once-in-a-generation scheme with the potential to deliver 2,500 new homes, 1,100 of which will sit at Quayside West, and over 161,500 sq ft of commercial space. Avison Young is extremely proud to have supported Homes England, and its partners, Newcastle City Council, the North East Combined Authority and Network Rail, to secure this funding package.

The package will fund vital remediation, groundworks and infrastructure activity, fixing complex land issues that have long acted as a barrier to investment at the site, which has lain derelict for decades. It will unlock development and pave the way for transformational, community-centric placemaking.

Situated on a commanding 52-acre site, Forth Yards is set to redefine the western gateway into Newcastle’s city centre. This is not just about reimagining a significant stretch of underutilised waterfront; it’s about creating a vibrant, residential-led mixed-use quarter, and a new sustainable neighbourhood. The development represents one of the most strategically crucial projects Avison Young has supported, from both a placemaking perspective and in terms of realising a broader vision for the city.

This funding package provides Homes England and its partners the resources to undertake critical derisking of the site and to seek a long-term delivery partner to lead the future development of Forth Yards.

Avison Young has been delighted to support Homes England and its partners as they have navigated these challenges, leveraging its expertise in strategic delivery and providing crucial commercial guidance to help turn Forth Yards’ massive potential into reality.

Stuart Howie, Principal and Head of Regeneration at Avison Young, said:
“Forth Yards is a once-in-a-generation opportunity. It will unlock one of Newcastle’s most significant brownfield sites, and Quayside West has long sat at the heart of that vision. Its location, adjacent to Central Station and the river front, means Forth Yards can become a great place in its own right, as well as a fantastic western gateway to the city.

“The importance of this funding milestone cannot be underestimated and follows years of collaborative effort. It means Homes England and its partners can move forward with confidence and seek the additional investment and skills needed from the private sector to deliver a new, vibrant and sustainable community in the city.

“We know that the investor and developer communities see this funding announcement as a huge vote of confidence in Forth Yards and they are eagerly awaiting Homes England’s delivery partner procurement, which is expected to be launched this autumn.”

Pat Ritchie, Chair of Homes England, said:
"This significant investment in Forth Yards demonstrates the agency's commitment to transforming previously undeveloped brownfield sites into thriving communities. By working in partnership with Newcastle City Council, the North East Combined Authority and Network Rail, we're addressing the complex challenges that have held back this strategically important site for decades.

“The new funding package will unlock the potential for thousands of new homes right in the heart of Newcastle, supporting the government’s mission of building 1.5 million homes this parliament.”

Leader of Newcastle City Council, Cllr Karen Kilgour, said:
“This is fantastic news and shows the government share our vision for the area. Forth Yards is arguably Newcastle’s most exciting development site that in time will provide thousands of new homes and create hundreds of jobs.

“The funding will act as a catalyst for development, allowing us to bring forward infrastructure improvements that will open up the site to attract much-needed private sector investment.

“In about 15 years, it will have created a whole new part of the city to the west and provided a new community for our residents, while adding significantly to our economy.”